October 12th 2024.
Boeing has announced that they will be making significant changes to their business operations, including laying off 17,000 employees and delaying projects. This decision was made due to the various challenges that the company has been facing.
In an email to employees, CEO Kelly Ortberg explained that these cuts are necessary in order to align with the company's financial reality. He also added that over the next few months, they plan to reduce their total workforce by approximately 10%. This reduction will affect all levels of employees, including executives and managers.
Ortberg acknowledged that this news will have a significant impact on employees and their families. He expressed his sincere wish that they could avoid these difficult decisions, but ultimately, they are necessary for the future of the business.
Boeing currently employs around 170,000 workers worldwide, and the company's shares have been on a decline this year. In the past year, they have fallen by 22.98%. This decline is due to concerns over the safety and quality of their aircraft, which were sparked by a cabin panel blowout in January and a problem spacecraft that forced NASA to leave two astronauts in space.
The company is set to release its third-quarter results on October 23, and they are expecting a revenue of $17.8 billion, GAAP loss per share of $14.77, and an operating cash flow of $1.9 billion. These figures have been impacted by the ongoing strikes by the International Association of Machinists and Aerospace Workers. Over 33,000 machinists have been on strike for several weeks at Boeing factories in Washington, Oregon, and California. They rejected Boeing's tentative contract, which did not meet their demand for a 40% pay raise over three years.
As a result of the strikes, Ortberg has been forced to delay the delivery of the 777X aircraft to 2026. He also admitted that the company is facing a difficult position, and the challenges they are currently facing are significant. In order to restore the company, tough decisions will have to be made, and structural changes will have to be implemented to ensure long-term competitiveness and customer satisfaction.
Ortberg also announced that the company has launched a WhatsApp channel for their customers to stay updated on the latest news, including breaking news, celebrity updates, and sports news. This channel is private, and no one can see your details or comments. It is an easy and efficient way for customers to stay informed on all things Boeing.
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